Trade of the Day: GBP/JPY
By: Dima Chernovolov
GBP/JPY continues to rise inside the 4-hour Up Channel chart pattern, which was previously identified by Autochartist. Autochartist measures the quality of this Up Channel at the 6-bar level – which is the result of the slow Initial Trend (4 bars), strong Uniformity (7 bars) and above-average Clarity (6 bars). GBP/JPY is expected to rise further inside this Up Channel.
As can be seen from the daily GBP/JPY chart below – the price earlier broke through the key resistance level 156.00 (which has been reversing the price from October). This price level is acting as the support after it was broken. The proximity of this support level and the strength of the active daily impulse increase the probability GBP/JPY will continue to rise inside this Up Channel.